General Money Management/Personal Savings & Investment ELEMENT 45 & 46 PG: 211
Objectives: Budgeting and debt management Define savings and investments Four common types of investments
What is a budget? Why budget? A budget is a written record of the money that flows in and out of your household every month. Why budget? Budgeting is the first step on the road to financial success. Controlling your day to day finances allows you to do the things you want to do.
Have you heard of the 50/30/20 rule? https://www.youtube.com/watch?v=uKN6VrDsvFM
Savings: Setting aside money for emergencies or for a future purchase
Investment: Buying assets with the expectation that your investment will make money for you
The four most common types of investments: Bonds Certificate of Deposits (CD) Stocks Mutual Funds
Bonds: The most inexpensive type of investment is a bond, in particular, the U.S. Savings Bond.
Certificate of Deposits “CDs”: A certificate issued by a bank to a person depositing money for a specified length of time at a specified rate of interest
Stocks: A share which entitles the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends
Mutual Funds: A professionally managed investment fund that pools money from many investors to purchase securities
Resources... Command Financial Specialist Fleet and Family www.saveandinvest.org/military www.incharge.org www.mint.com www.stashinvest.com
Questions???